Ma Zhixiong and Ding Shijun: Livelihood Capital, Livelihood Risk and Risk Management in Farmers' Differentiation

Ma Zhixiong Ding Shijun

school of Economics, Guangdong University of Finance and Economics; Zhongnan University of Economics and Law

abstract

under the background of rural revitalization, the risk management logic in farmers' differentiation is analyzed, and the analysis framework of the impact of farmers' livelihood capital and its risks on the risk selection of farmers' differentiation is proposed. Based on the unbalanced panel data of 27030 farmers' samples in CFPS database from 2012 to 2020, the two-column model estimation and systematic generalized moment estimation (GMM) are used for empirical testing. The study found that the increase of natural capital has a negative impact on farmers' differentiation risk because the agricultural management of farmers in China has failed to meet the scale requirements in general; the increase of material capital, financial capital and social capital can directly improve farmers' anti-risk ability and play a positive role in the increase of farmers' differentiation risk; the improvement of human capital plays a "catalyst" role in the current farmers' differentiation risk, but it will not make farmers continue to rise in the risk of differentiation. In addition, the livelihood risks faced by farmers affect the risk choice of farmers' differentiation in two ways, one is due to the "reflection effect" of farmers to make up for losses, the increase of non-systematic livelihood risks will increase the risk of farmers' differentiation, and the other is that farmers face more complex livelihood decisions and more information processing costs, and the increase of systematic livelihood risks will reduce the risk of farmers' differentiation.

Keywords

livelihood risk; Livelihood capital; Farmers' differentiation; Risk preference; Two-column model

provenance: Journal of Anhui Agricultural University (Social Science Edition), vol. 33, No. 4, 2024, pp. 55-65.